Hungary

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fDi Editor | 05/01/2004 12:00 am

Hungary enjoys a stable political and economic environment and a favourable business climate. The country is centrally located in Europe, a bridge between east and west and with accession to the EU in 2004, companies will have access to 600 million consumers.

Hungary has a number of advantages. The labour force is skilled, innovative and cost effective. Corporate taxes – at 18% – are the second lowest in Europe. There are numerous fiscal and financial incentives available to investors, including new development tax benefits, tax-free investment reserves, and tax allowances for corporate R&D and innovation. Direct incentives are granted on both a horizontal basis (covering job creation, training and R&D) and on a sectoral basis.

The country has good infrastructure, well-equipped industrial sites, logistics centres, top educational and training facilities, and R&D centres. Public administration is service-oriented to satisfy investors’ information needs and to provide assistance towards sound business decisions.

According to The Economist’s Economic Intelligence Unit analysis, Hungary is the third best investment location among 27 central and east European countries.

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